What is Form 1099-G?
Form 1099-G is used to report local, state, and federal governments payments made to taxpayers during a particular tax year.
The filers will receive the form from the government agencies to inform the filers of their funds. They will then receive a copy that will be needed to report their federal income tax returns. Form 1099-G should be used to calculate the filer’s federal adjusted gross income or report the amount of refund filer received from a prior tax year.
If income is received from Reemployment Trade Adjustment Assistance (RTAA) payments; taxable grants, agricultural payments, or payments on a Commodity Credit Corporation (CCC) loan then it must be reported to the IRS.
Quantities that do not need to be reported on Form 1099-G, may include compensation for services, prizes, and certain incentives, these amounts may be reportable on Form 1099-MISC, Miscellaneous Information, or Form 1099-NEC, Nonemployee Compensation.
1099-G forms must be mailed to recipients by February 15 and e-filed with the IRS by March 31 each year.